Human Resources

How Does Gusto Payroll Work?

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Gusto is a great software for managing your payroll.

I used Gusto to manage the payroll of our software company Easy Agent Pro and think it was one of the core pillars of our success.

The Gusto platform made it easy to pay remote employees and contractors across various states all while remaining compliant. 

 Let's dive in...

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  1. Compliance and following rules

    When it comes to tracking payroll tax rates, unemployment organizations, and various city/state/county rules across various states, payroll can quickly become a hassle. If you run a business as I do, you see these things are really just a means to an end. They shouldn't take too much time and when you are just starting you, they cannot take a lot of time.

    All the time you spend on managing these activities directly neglects the parts of your business (software and sales) that make money.

    Gusto makes this simple. They help you stay compliant and they always make it easy to fill out the required government forms.

    We saved so much time running payroll with them. It's literally 2-3 button clicks to process the average payroll.

  2. Onboarding, surveys and engagement

    Gusto also made it easy to onboard employees.

    They let you setup custom forms that need to be filled out. We used this to faciliate making sure everyone had their NDA filled out. 

    They also let you upload documents for the employees first day. This is great for the password/app cheat sheet to help new employees get through their first few weeks.

    They also encourage co-workers to welcome new hires and do a good job at making it easy to reach out to other co-workers.

  3. Time management

    Gusto also has a great native time tracking solution for your hourly contractors and employees. It fits into the payroll module so that all the math is "done-for-you". 

    This really turns most payroll duties into just verifying a few things and then clicking the "done" button.

  4. Tax time

    Finally, the icing on the cake is how easy Gusto makes payroll and income taxes. They automatically distribute w-2's to employees at the appropriate time. You don't even have to do anything! It's really a fantastic hands-free solution.

    I highly recommend the app if you aren't using something like it currently. It made running a software company super simple.

    More information:

    - IRS Payroll Outsourcing 

Tyler Zey is a serial entrepreneur who has experimented with a lot of business software.